BUFC vs PMAY

BUFCBAB Conservative Buffer ETF

PMAYCInnovator U.S. Equity Power Buffer ETF - May

In short

BUFC Most buffer funds lock you into a 12-month outcome period. BUFC resets every three months, targeting 15% downside protection against the S&P 500 with roughly 3% of the upside per period. Deep cushion, short leash.

PMAY A 15% cushion on the S&P 500, rebooted every May. PMAY gives up part of the upside (a cap reset each period) in exchange for absorbing the index's first 15 points of losses, and it can be held through reset after reset.

Stated mandate

BUFC The Fund is an actively managed equity ETF seeking conservative capital appreciation with potential partial downside protection. It uses options to establish an upside cap and downside protection over rolling three-month periods, targeting 15% downside protection and about 3% upside participation to the S&P 500.

PMAY The fund seeks to participate in SPY's gains up to a preset cap while protecting the first 15% of SPY losses during each roughly annual outcome period. It resets for a new outcome period and may be held indefinitely.

Why people hold it

• BUFC Uses options to target 15% downside protection against the S&P 500 over rolling three-month periods, so the cushion resets four times a year instead of once.alliancebernstein.com
• At 0.69%, it costs less than Innovator's 0.79% Power Buffer funds (PJUL, PJAN, POCT) and less than the typical fund in its buffer cohort.
• Actively managed rather than pinned to a calendar index series, running since 2023, and among the stronger implementations in its buffer peer group.

• PMAY The buffer is the whole point: the first 15% of S&P 500 losses over each roughly one-year period are absorbed before fees, then the structure resets for a new period.
• You know the calendar in advance. Each outcome period runs from May 1 to the end of the following April, so the reset date is never a surprise.
• Easy to get in and out of by buffer-fund standards: trading costs and market quality rate near the top of the S&P 500 buffer group.
• Running since 2020 and one of the stronger implementations in a crowded field of S&P 500 buffer funds.

Worth knowing

• BUFC The price of that deep cushion: upside participation is targeted near 3% per three-month period, so big rallies mostly pass you by.
• Protection is partial and period-based. Losses past the targeted 15% pass through, and buying mid-period shifts your effective buffer and cap.alliancebernstein.com
• Thinly traded for its size, so spreads and limit orders deserve attention.

• PMAY The cap is the price of the cushion. Upside is limited each period, and a fresh cap is set at every reset, so it can land above or below the previous one.
• Timing matters: buy mid-period and your effective cap and remaining buffer differ from the stated terms, which are designed to work over a full outcome period.
• At 0.79%, it sits at the typical price for single-month buffer funds, while laddered alternatives like BUFP (0.50%) and PSFF (0.10%) charge less.

Full BUFC profile⁠

Full PMAY profile⁠